Tesco share price rises on board announcements

 
Billy Ehrenberg
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Tesco: Supermarket's share price rose this morning, after dropping 52 per cent in a fortnight (Source: Getty)

Tesco's share price rose this morning after the troubled supermarket revealed it was bolstering its senior team.

The retail giant, whose share price had fallen 52 per cent this year by the end of Friday's trading, has added two new non-executive members to its board, including former chief executive and president of Ikea Group Mikael Ohlsson.

The other addition, Richard Cousins, has been chief executive of Compass Group since 2006, was a non-executive director of Reckitt Benckiser Group from 2009 until May 2014 and was a non-executive director of HBOS and Bank of Scotland between 2007 to 2009.

Tesco will hope that these appointments will go some way towards facing down criticism over the lack of retail experience on its board and rebuilding trust in the company after it was forced to admit it had overstated first-half profit by £250m.

Sir Richard Broadbent, chairman, said:
I am delighted to welcome Mikael and Richard to the board and know that their broad skills and experience will be a real asset to the company in the coming years. Mikael and Richard have been updated on and are wholly supportive of the steps being taken by the new management team to rebuild trust in Tesco and to focus all the resources of the business to deliver value to our customers.
Investors seemed buoyed by the news, with its share price up nearly 1.7 per cent at pixel time.
The small uptick is almost unnoticeable in the bleakness of the last 12 months.

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